Verizon Communications (XBUL:BAC) Beneish M-Score : -2.69 (As of Mar. 28, 2025)

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What is Verizon Communications Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Verizon Communications's Beneish M-Score or its related term are showing as below:

XBUL:BAC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93 Med: -2.7 Max: -1.99
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Verizon Communications was -1.99. The lowest was -2.93. And the median was -2.70.

Verizon Communications Beneish M-Score Historical Data

The historical data trend for Verizon Communications's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Verizon Communications Beneish M-Score Chart

Verizon Communications Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.93

-2.58

-2.65

-2.73

-2.69

Verizon Communications Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.73	-2.65	-2.63	-2.65	-2.69

Competitive Comparison of Verizon Communications's Beneish M-Score

For the Telecom Services subindustry, Verizon Communications's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Verizon Communications's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Verizon Communications's Beneish M-Score falls into.

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Verizon Communications Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Verizon Communications for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0345

0.528 * 0.9861

0.404 * 0.9921

0.892 * 1.0061

0.115 * 0.9865

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0355

4.679 * -0.052018

0.327 * 0.9657

-2.69

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was лв47,391 Mil.
Revenue was 64764.976 + 60497.65 + 59528.38 + 59864.176 = лв244,655 Mil.
Gross Profit was 36605.344 + 36465.58 + 36892.131 + 36500.067 = лв146,463 Mil.
Total Current Assets was лв73,554 Mil.
Total Assets was лв698,293 Mil.
Property, Plant and Equipment(Net PPE) was лв241,399 Mil.
Depreciation, Depletion and Amortization(DDA) was лв32,476 Mil.
Selling, General, & Admin. Expense(SGA) was лв61,919 Mil.
Total Current Liabilities was лв117,567 Mil.
Long-Term Debt & Capital Lease Obligation was лв256,492 Mil.
Net Income was 9084.631 + 6000.757 + 8336.805 + 8353.141 = лв31,775 Mil.
Non Operating Income was 1294.174 + -88.94 + -306.754 + 201.477 = лв1,100 Mil.
Cash Flow from Operations was 18935.238 + 17989.565 + 17216.328 + 12858.246 = лв66,999 Mil.

Total Receivables was лв45,532 Mil.
Revenue was 63764.849 + 60508.54 + 59165.358 + 59738.933 = лв243,178 Mil.
Gross Profit was 36207.834 + 36118.894 + 35997.281 + 35227.674 = лв143,552 Mil.
Total Current Assets was лв66,821 Mil.
Total Assets was лв690,205 Mil.
Property, Plant and Equipment(Net PPE) was лв241,475 Mil.
Depreciation, Depletion and Amortization(DDA) was лв31,990 Mil.
Selling, General, & Admin. Expense(SGA) was лв59,436 Mil.
Total Current Liabilities was лв96,606 Mil.
Long-Term Debt & Capital Lease Obligation was лв286,248 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(47390.733 / 244655.182)	/	(45532.059 / 243177.68)
	=	0.193704	/	0.187238
	=	1.0345

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(143551.683 / 243177.68)	/	(146463.122 / 244655.182)
	=	0.590316	/	0.598651
	=	0.9861

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (73553.743 + 241398.872) / 698293.168)	/	(1 - (66821.496 + 241475.107) / 690205.033)
	=	0.548968	/	0.553326
	=	0.9921

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	244655.182	/	243177.68
	=	1.0061

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(31989.516 / (31989.516 + 241475.107))	/	(32475.966 / (32475.966 + 241398.872))
	=	0.116979	/	0.11858
	=	0.9865

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(61918.882 / 244655.182)	/	(59435.809 / 243177.68)
	=	0.253086	/	0.244413
	=	1.0355

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((256491.52 + 117566.555) / 698293.168)	/	((286248.45 + 96605.653) / 690205.033)
	=	0.535675	/	0.554696
	=	0.9657

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(31775.334 - 1099.957	-	66999.377)	/	698293.168
	=	-0.052018

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Verizon Communications has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.

Verizon Communications Beneish M-Score Related Terms

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Verizon Communications Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Verizon Communications Inc (XBUL:BAC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

VZ:USA VZ:Peru VZ:Mexico VZ_KZ:Kazakhstan 1VZ:Italy BACd:UK 0Q1S:UK BACB:Germany BAC:Germany BAC:Germany BAC:Germany BAC:Germany VZ:Canada VERZ34:Brazil VZ:Austria VZ:Argentina

Address

1095 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.verizon.com

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 30 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks. Verizon agreed to acquire Frontier Communications in September 2024.